The Euro is
a currency sui generis. A deficiency in the monetary setup of the EZ dooms the
entire Euro endeavor to failure. Ever more monetary and fiscal assistance in
the course of the OMT and the ESM operations is the result of rational
political decision-making. Without fundamental reforms of the EZ institutional
setup, however, these policies will eventually only serve to increase the
probability of an exit from the EZ core.

The
prospects for the euro and the eurozone remain uncertain. But recent events at
the European Central Bank, in Germany, and in global financial markets
make it worthwhile to consider a favorable scenario for the common currency’s
future.

The European Council has become the new centre
of political gravity in EU decision-making – europp
/ LSE